Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
OPERATING ACTIVITIES    
Net loss $ (18,973,535) $ (12,017,366)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 146,373 162,187
Amortization of intangible assets 316,368 309,234
Impairment of intangible assets 14,100,000  
Noncash change in right-of-use assets 320,900  
Noncash interest expense 4,306,927 4,706,056
Share-based compensation 2,646,246 1,906,098
Deferred income taxes (1,255,012) (438,064)
Provision for obsolete inventory 244,823 109,107
Change in fair value of derivative liabilities 557,000 1,199,000
Other 6,091 142,590
Changes in current assets and liabilities:    
Increase in accounts receivable (87,790) (1,351,709)
Increase in inventory (3,301,551) (1,454,483)
Decrease (increase) in prepaid expenses and other assets 621,777 (704,306)
Decrease in accounts payable (312,078) (56,938)
(Decrease) increase in accrued expenses and other current liabilities (946,390) 2,003,387
Decrease in operating lease liabilities (320,244)  
Net cash used in operating activities (1,930,095) (5,485,207)
INVESTING ACTIVITIES    
Capital expenditures (105,760) (108,517)
Net cash used in investing activities (105,760) (108,517)
FINANCING ACTIVITIES    
Proceeds from sale of shares in public offering   9,400,000
Payment of costs related to public offering   (268,033)
Installment payments on SWK credit agreement (4,421,915) (4,935,600)
Proceeds from sale of shares under common stock purchase agreement 13,399,999 3,600,000
Payment of costs related to common stock purchase agreement (50,284)  
Proceeds from stock option exercises 415,464 333,000
Proceeds from premium finance agreement 836,780  
Installment payments on premium finance agreement (836,780)  
Cash paid for debt portion of finance lease (13,783)  
Net cash provided by financing activities 9,329,481 8,129,367
Net increase in cash and cash equivalents 7,293,626 2,535,643
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 6,295,152 3,759,509
CASH AND CASH EQUIVALENTS AT END OF YEAR 13,588,778 6,295,152
Supplemental disclosure of cash flow information:    
Cash paid for income taxes 362,060 303,582
Cash paid for interest 314,495  
Schedule of non-cash investing and financing activities:    
Right-of-assets recorded in exchange for lease liabilities 1,673,215  
Shares issued in connection with common stock purchase agreement 680,937  
Amortization of deferred costs related to common stock purchase agreement $ 390,931 101,981
Acquisition of equipment, furniture, and fixtures through capital lease   $ 43,567